Rehoboth officials need to keep negotiating wastewater partnership
In 1983, Rehoboth Beach completed a new wastewater treatment plant designed to serve Henlopen Acres, Dewey Beach and Rehoboth. Its capacity was 3.4 million gallons per day and it was permitted to discharge effluent into the Lewes-Rehoboth Canal.
In 1998, because of heavy nutrient pollution in the Delaware Inland Bays, DNREC ordered Rehoboth Beach to stop discharging effluent, high in nitrogen and phosphorus nutrients which contribute to algae growth, into the canal.
In the years following 2000, Sussex County worked hard to reduce the number of individual septic tanks in the county, building an extensive wastewater treatment system that discharged effluent by spray irrigation on agricultural land.
By 2009, Rehoboth had completed enough due diligence to know that we wanted an ocean outfall. We approached Sussex County to join the project and they declined, arguing we should join their wastewater spray irrigation system. With no agreement, we were told that we were on our own.
Fast forward to Aug. 8, 2017. Rehoboth Beach passed a referendum to fund an ocean outfall, borrowing $40 million for the outfall and force main plus $12 million in upgrades needed for the treatment plant. However, Sussex County now wanted Rehoboth Beach to continue serving Henlopen Acres and Dewey Beach. They signed a service agreement to contribute 42% of the capital costs going forward, and operating and maintenance costs according to flow percentage of each entity. This 2017 contract has worked perfectly for the past seven years.
In the summer of 2024, Sussex County came to us one more time. Only now they wanted what amounts to 85% of our flow forever, but wanted to pay no more than the 42% in the 2017 contract, and a one-time payment of $20 million (a new county ocean outfall would cost upwards of $70 million to $80 million, if it could get permission to build one).
If I build a new house and hook into Sussex County wastewater, I pay a $6,600 impact fee, then pay a capital asset fee on the money borrowed to build the collection system that I’m joining, and finally pay a quarterly service fee. Sussex County should pay us a fair impact fee, contribute a percentage of loan payment, according to its flow, and a fair contribution to reserves and risk indemnification.
Rehoboth Beach officials need to take the time and keep negotiating until there is a more reasonable agreement, fair to all parties.
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